Thursday, November 1, 1990

Most non participants (and some participants too) perceive skiing to be too expensive. Skiing is now reverting to a "rich man's sport". Manufacturing sophistication is pushing sport into an "ultimate" corner, where numbers are going down. Solutions would consist of addressing the problem head on with the USIA marketing campaign. reforming our junior racing system, Missed marketing opportunities, and how to re-direct communication.

Monday, October 1, 1990

Demographics and leisure habits are changing; baby-boomers are growing tired. They'd rather go on a cruise or lay in the sun. Is their own micro baby-boom enough to provide a deep enough replacement? Skiing most of the time is a pain in the neck,... Solution would be getting the best out of that micro baby boom, working with schools, re-packaging skiing a la Club Med (or a la Cruise type) making it a one stop shopping experience, enhance tie-ins between ski shops and ski areas,

Saturday, September 1, 1990

Problem of global warming. Who to believe? Is it safe to pretend the problem doesn't exist or should we take it seriously and implement a clear course of action. For sure recent snow making explosion hides somehow the problem. Solutions would be, first ascertain the truth of the matter, further improve snowmaking efficiency; look at alternative vegetation that can optimize snow retention, look at refrigerating lower slopes - using geothermal energy where possible?, look at ways of developing giant blankets that would enable areas to make and store snow in advance, look at developing new resorts at higher elevation,

Wednesday, August 1, 1990

For ski industry factories, current spring orders are always a reflection of events that have shaped the preceding selling season. Since industry bookings for the 90/91 are showing a concerning decline, it is interesting to find out how this year's situation compare with 79/80 - another meager season, and why.

The drop of 1980, was mostly the result of a poor snow year combined with the beginning of a major recession. Unlike this season however, the drop in sales was limited to North America which, at the time, represented a third of the world market.

In contrast, today's crisis is taking global dimensions. With Europe enduring its third snowless winter in a row, it is reasonable to see a drop in units amounting to one-third of the volume we had a couple of years ago. At that time, Europe accounted for half of the world's business; today, it barely accounts for one third. The industry's saving grace has been the growing appetite exhibited by Japanese for ski goods, to the point that their country alone now consumes one third of the ski goods produced in the world.

A lot has already been written and discussed about what ails our business. Everyone seems to target one particular area that might need redress, but it is hard to grasp the multiple components in today's crisis. Over the next series of article, we will explore these many reasons, and propose solutions that should lessen or altogether eliminate their negative impact on the industry.

First and foremost is the availability of snow early in the season, and in sufficient quantity; that pivotal need is being haunted by the fear of global warming. How founded is that threat? Do we have to wait until our worst fears are realized to take some action or can we do something now to address the situation before it hits us?

Another challenge is the changing face of demographics. The baby-boomers, who put skiing on the map, are defecting as they are growing older, and in spite of their best efforts, are not leaving enough children behind to replenish their ranks... Leisure activities are also changing affecting skiing in many ways... How we can make the best out of a changing customer base, and find new ways to keep existing skiers involved, and entice more youth...

The high cost of skiing may be taboo to many of us, but we should not ignore it. Many non participants consider skiing to be a "rich man's sport" and hardly affordable. How can we best address that pervasive perception which affects business from Munich to Los Angeles? This might give us a wonderful opportunity to re-think and re-direct the industry's communication.

With the world becoming a global village, now is an opportunity for American ski areas to become more assertive about their product and start aggressively marketing it to both Europe and Japan. This may only benefit one segment of our industry, but again, every bit helps...

We should also take a very critical look at our industry and its fragmentation; in a small business like ours, can we continue to afford the plethora of brands and retail outlets that exist today. Are we condemned to continue competing into an overcrowded arena under the pretense that industry is a fun place to be in?

Unifying the many arms of skiing began with USIA. It should certainly go beyond whatever already exists, reach farther outside the narrow scope of skiing and emerge under a broader winter sports umbrella. It is now time to more formally incorporate USAA and PSIA within the new USIA. Together, these entities can performing their part and create the harmony needed to advancing our business.

For too long, North America has followed Europe's lead in terms of skiing. Today, it is time for us to assert our strengths in marketing, media and sports management and introduce those new approaches that will change the face of the winter sport industry as a new century approaches.

All these subjects and more will be debated in this column over the next months. Being aware of the challenges is one thing, gathering solutions however, can give our industry the resources it needs to muster the unavoidable change and re-energize itself.

For ski industry factories, current spring orders are always a reflection of events that have shaped the preceding selling season. Since industry bookings for the 90/91 are showing a concerning decline, it is interesting to find out how this year's situation compare with 79/80 - another meager season, and why.

The drop of 1980, was mostly the result of a poor snow year combined with the beginning of a major recession. Unlike this season however, the drop in sales was limited to North America which, at the time, represented a third of the world market.

In contrast, today's crisis is taking global dimensions. With Europe enduring its third snowless winter in a row, it is reasonable to see a drop in units amounting to one-third of the volume we had a couple of years ago. At that time, Europe accounted for half of the world's business; today, it barely accounts for one third. The industry's saving grace has been the growing appetite exhibited by Japanese for ski goods, to the point that their country alone now consumes one third of the ski goods produced in the world.

A lot has already been written and discussed about what ails our business. Everyone seems to target one particular area that might need redress, but it is hard to grasp the multiple components in today's crisis. Over the next series of article, we will explore these many reasons, and propose solutions that should lessen or altogether eliminate their negative impact on the industry.

First and foremost is the availability of snow early in the season, and in sufficient quantity; that pivotal need is being haunted by the fear of global warming. How founded is that threat? Do we have to wait until our worst fears are realized to take some action or can we do something now to address the situation before it hits us?

Another challenge is the changing face of demographics. The baby-boomers, who put skiing on the map, are defecting as they are growing older, and in spite of their best efforts, are not leaving enough children behind to replenish their ranks... Leisure activities are also changing affecting skiing in many ways... How we can make the best out of a changing customer base, and find new ways to keep existing skiers involved, and entice more youth...

The high cost of skiing may be taboo to many of us, but we should not ignore it. Many non participants consider skiing to be a "rich man's sport" and hardly affordable. How can we best address that pervasive perception which affects business from Munich to Los Angeles? This might give us a wonderful opportunity to re-think and re-direct the industry's communication.

With the world becoming a global village, now is an opportunity for American ski areas to become more assertive about their product and start aggressively marketing it to both Europe and Japan. This may only benefit one segment of our industry, but again, every bit helps...

We should also take a very critical look at our industry and its fragmentation; in a small business like ours, can we continue to afford the plethora of brands and retail outlets that exist today. Are we condemned to continue competing into an overcrowded arena under the pretense that industry is a fun place to be in?

Unifying the many arms of skiing began with USIA. It should certainly go beyond whatever already exists, reach farther outside the narrow scope of skiing and emerge under a broader winter sports umbrella. It is now time to more formally incorporate USAA and PSIA within the new USIA. Together, these entities can performing their part and create the harmony needed to advancing our business.

For too long, North America has followed Europe's lead in terms of skiing. Today, it is time for us to assert our strengths in marketing, media and sports management and introduce those new approaches that will change the face of the winter sport industry as a new century approaches.

All these subjects and more will be debated in this column over the next months. Being aware of the challenges is one thing, gathering solutions however, can give our industry the resources it needs to muster the unavoidable change and re-energize itself.

Sunday, July 1, 1990

A third snowless winter has forced many Europeans to rethink their views about an industry, that until recently, had never faced such a drop in business. The facts that America wasn't able to pick up all of the slack, and that Japan's growth may be slowing down, are introducing concerns which are more than snow deep, and will undoubtably lead to some radical changes.

Europeans are not taking the recent warming trend too seriously and believe records snow falls may be right around the corner, yet ski areas are now gearing up for more snow making facilities and grooming every run with a fine-tooth comb so they can open under the most marginal conditions. Will that suffice? Probably not.

There is a growing feeling in the Alps that hard-core skiers are leaving the sports in large numbers. The attraction from sun and sea resorts seems to be the main reason for this alarming attrition. North African and Caribbean resorts along with cheaper group air fares have suddenly come of age and have become the number one competitors to skiing.

The benefits - especially during this past drought seasons - are obvious. Conditions in the tropics are more predictable than Europe's capricious weather, and the logistics - shorts and swimsuit - simply don't compare. Europeans who used to be enthusiastic skiers and are now approaching their 50's, feel their bones are getting weaker and no longer want to "kill" the mountain.

To make matters worse, they've failed to pass their passion for skiing to their children who are less avid as they are confronted with a host of recreational options. Winter sports may be fun, but they're no longer the only game in town... Monoski and snowboard have played a role in retaining more youth into the winter sport scene but they've failed to add new participants... Undeniably, there now is a "blase" attitude towards winter sports in Europe.

Until recently, the continent drop-out rate has been masked by the growth which came from Scandinavia, Germany, and Holland in the 70's, and one decade later by the explosion of skiing in the U.K. Once these trends stabilize, the drop could accelerate. Obviously, the evolution of the east block countries is watched with high hopes; however, some lag is to be expected between the moment these countries turn their economies around and the time they begin consuming western style...

On the retail front, a record numbers of failures are expected this year. Unlike here, European ski retailers are not as specialized and are all dealing in counter-seasonal sports. Even though that diversification shelters them against poor winters, their small volume is placing them in an awkward position against a mounting network of chains.

While ski areas shops used to do a significant retail business, they are gradually losing to city businesses and their sole strength remaining at rental. One significant fact concerns disappointing retail sales of snowboards compared to the rental volume they generate. If the trend goes on, rental may severely curtail retail sales of equipment.

Over-capacity is therefore a problem shared by all ski areas. This will force more and more European destination resorts to actively prospect in Japan and America. Without a question accommodations and general levels of service will have to fit the specific needs of non-Europeans, Alpine ski resorts know it and are gearing to go ahead with these adjustments. It is only a matter of time until that transatlantic competition will be felt at home.

Logistics are another negative often associated with skiing. The reason behind the successful development of alpine skiing in Scandinavia has been its integration into packaged tours, where everything is taken care of... To survive, the whole European skiing industry may have to accelerate that trend for all-inclusive pricing and pampered service. Upcoming airline deregulation, as well as an increasing network of high-speed trains over the continent will make travel easier and take some headaches out of skiing.

Is there something to be learn from these European woes? Most certainly. In this global day and age, trends are becoming more universal, and watching Europe's response to some trying times might provide us with some ideas we could just use at home.